IDFC First Bank Stock Surges Over 6% After Strong Q4 FY25 Loan and Deposit Growth
IDFC First Bank’s stock witnessed a remarkable rally on Thursday, soaring over 6.4% on the Bombay Stock Exchange (BSE). The surge followed the release of the bank’s Q4 FY25 business updates, showcasing significant growth in both loans and deposits. The strong financial performance has fueled investor confidence, making the stock one of the top gainers in the banking sector for the day.
Stock Price Movement
With a market capitalization of ₹44,193.8 crore, shares of IDFC First Bank closed at ₹60.36, marking a 5.5% gain from its previous closing price of ₹57.24. Despite this recent uptick, the stock has experienced a 23% decline over the past year. However, in the last month, it has rebounded with a 5% gain, reflecting renewed investor interest in the bank’s strong fundamentals.
Key Highlights from Q4 FY25 Business Update
1. Surge in Deposits
IDFC First Bank reported a 22.7% year-on-year (YoY) increase in total deposits, reaching ₹4.84 lakh crore in March 2025, compared to ₹3.94 lakh crore in the previous year.
2. Growth in Loans & Advances
The bank’s total loans and advances grew by 20.3% YoY, climbing from ₹2 lakh crore in March 2024 to ₹2.41 lakh crore in March 2025. On a quarter-on-quarter (QoQ) basis, the growth stood at 4.7%.
Additionally, credit investments in corporate bonds, PTCs, and security receipts (SRs) stood at ₹5,398 crore, further strengthening the bank’s financial position.
3. Customer Deposits on the Rise
Customer deposits saw a robust 25.2% YoY growth, increasing to ₹2,42,546 crore as of March 31, 2025, compared to ₹1,93,753 crore in the same period last year. The QoQ growth stood at 6.7%.
4. CASA Deposits & Ratio Stability
The bank’s CASA (Current Account and Savings Account) deposits grew by 24.8% YoY, reaching ₹1.18 lakh crore in March 2025 from ₹94,768 crore in March 2024. Despite a minor drop in the CASA ratio from 47.2% a year ago to 46.9% in Q4 FY25, the bank continues to maintain strong deposit growth.
5. Credit-to-Deposit (CD) Ratio Declines
The CD ratio declined to 93.8% in Q4 FY25, compared to 98.4% in the same period last year and 95.7% in the previous quarter. This signals the bank’s ongoing strategy to optimize its deposit base and reduce reliance on external borrowings.
Notably, IDFC First Bank has been focused on reducing the CD ratio since its merger with Capital First in 2018 by strengthening its retail customer deposits and repaying legacy borrowings.
Key Financial Ratios
| Metric | Value |
|---|---|
| Market Cap | ₹44,148 Cr. |
| Current Price | ₹60.4 |
| High / Low (52-week) | ₹86.1 / ₹52.6 |
| Stock P/E | 22.9 |
| Book Value | ₹51.6 |
| Dividend Yield | 0.00% |
| Return on Capital Employed (ROCE) | 6.93% |
| Return on Equity (ROE) | 10.1% |
| Debt-to-Equity Ratio | 7.50 |
| Intrinsic Value | ₹82.1 |
| Graham Number | ₹55.9 |
| PEG Ratio | 0.80 |
| RSI (Relative Strength Index) | 60.4 |
| Earnings Per Share (EPS) | ₹2.69 |
| Debt | ₹2,83,226 Cr. |
| Free Cash Flow (3Yrs) | ₹14,963 Cr. |
| Free Cash Flow (5Yrs) | ₹39,001 Cr. |
What This Means for Investors
The strong Q4 FY25 performance of IDFC First Bank highlights its resilient business model and robust financial growth. The significant increase in customer deposits and loans signals improved operational efficiency and financial stability.
While the stock has faced volatility over the past year, the recent gains suggest renewed investor confidence. The decline in the CD ratio and the focus on strengthening retail deposits indicate a strategic shift toward long-term sustainable growth.
Given the current undervaluation compared to its intrinsic value (₹82.1) and its price-to-book ratio of 1.17, the stock could have upside potential for long-term investors.
Frequently Asked Questions (FAQs)
1. Why did IDFC First Bank’s stock rise by over 6%?
The stock surged after the bank released its Q4 FY25 business update, reporting strong growth in loans (20.3% YoY) and deposits (22.7% YoY), indicating strong financial performance.
2. What is the current price of IDFC First Bank shares?
As of Thursday’s trading session, the stock closed at ₹60.36, reflecting a 5.5% increase from its previous close.
3. How much did IDFC First Bank’s deposits grow in Q4 FY25?
Total deposits grew 22.7% YoY, reaching ₹4.84 lakh crore in March 2025, up from ₹3.94 lakh crore in March 2024.
4. What is the CASA ratio of IDFC First Bank?
The CASA ratio stood at 46.9%, slightly lower than 47.2% a year ago and 47.7% in the previous quarter.
5. What is the Credit-to-Deposit (CD) ratio of the bank?
The CD ratio declined to 93.8%, showing an improvement from 98.4% a year ago and 95.7% in the previous quarter, reflecting better deposit mobilization.
6. How has IDFC First Bank’s stock performed in the past year?
The stock has delivered negative 23% returns in the past year but has shown a 5% positive return in the last month, suggesting a potential recovery.
7. Is IDFC First Bank stock a good investment?
With a strong deposit and loan growth, a focus on reducing its CD ratio, and an intrinsic value of ₹82.1 compared to the current market price of ₹60.4, IDFC First Bank may offer long-term growth potential for investors.
Final Thoughts
IDFC First Bank’s strong Q4 FY25 performance has reaffirmed its commitment to growth and financial stability. The increase in customer deposits and loan advancements reflects healthy business momentum, while a declining CD ratio indicates improved deposit mobilization strategies.
Investors looking for a growing private sector bank with strong fundamentals may find IDFC First Bank an attractive investment opportunity in the banking sector. However, monitoring future financial performance and market trends will be key to making informed investment decisions.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.